FlightAware sues prediction market platform Kalshi over unauthorised data use
Legal action highlights growing regulatory and corporate friction surrounding prediction markets, with FlightAware alleging unauthorised use of its trademark and data to operate betting markets.
Flight tracking service FlightAware has filed a lawsuit in New York against prediction market platform Kalshi, alleging the company used its data and trademark to operate gambling markets without authorisation. The legal action seeks damages and a permanent injunction, with FlightAware claiming Kalshi continued to utilise its intellectual property despite receiving a cease-and-desist letter.
The lawsuit coincides with separate legal action by New York Attorney General Letitia James against Kalshi for allegedly running an illegal gambling operation. This dual pressure underscores the intensifying scrutiny facing prediction market platforms, which many states classify as gambling rather than regulated derivatives markets.
FlightAware states it was "never informed" that Kalshi would use its data or trademark for these purposes. The company only discovered the usage when media outlets began reaching out for comment regarding the platform's flight cancellation markets. Following this discovery, FlightAware issued a cease-and-desist letter, alleging violations of its terms of use, trademark infringement, and reputational harm.
Kalshi began offering users the ability to bet on the percentage of flights cancelled at an airport in a given timeframe in July 2026. At the time, the company stated it was verifying flight cancellations with data from FlightAware and the US Department of Transportation. FlightAware had previously clarified that no company was authorised to use its data for this purpose and threatened account termination for any violations.
Beyond data rights, the lawsuit echoes concerns from the airline industry that prediction markets for flights could incentivise the "mass disruption of air travel" for profit. While Kalshi has implemented insider trading rules, such as verifying user employment and restricting politicians and athletes from betting on elections and games, the legal challenges remain unresolved. Engadget has contacted Kalshi for comment on the lawsuit.
